Value Creation Through Expert Financial Management

SeniorExecutive Finance

17 20 May 2015Jumeirah Emirates Towers Hotel, Dubai, UAE

www.informa-mea.com/execfinance

an event

On This Course, You Will:

1. Obtain an appreciation of the concept of shareholder value

and its contemporary application to corporate performance

2. Understand the dierent methods of project appraisal in

contemporary use and how they have evolved over recent

years

3. Analyse cutting edge techniques for estimating the cost of

capital and capital budgeting

4. Develop a sound knowledge of modern methods of valuing

companies, how to select appropriate techniques in dierent

situations and the primary value drivers

5. Understand the methods and best practice in raising debt and

equity for a range of firms

Led by

Dr. Nabil Zaki

The George Washington University School of Business,

Informas Academic Partner, is dedicated to excellence: in

its teaching and research about management, in the public

and private sectors, within the United States and

internationally.

The school has a 75 year history of preparing men and

women for leadership in both the public and private

sectors. Known internationally for its dedication to

academic excellence, the school draws students from all

parts of the United States and around the world.

Beyond first class teaching and scholarship, the schools

faculty oers practical experience in the issues and challenges confronting business and government. Its

research centres link faculty and students with US and

international business and government organisations.

Recent distance learning initiatives have expanded the

schools global reach.

Course Requirements And Certificates

Delegates must meet two criteria to be eligible for an Informa/

GW Certificate of Completion for a course:

1. Satisfactory attendance delegates must attend all sessions

of the course. Delegates who miss more than 2 hours of the

course sessions will not be eligible to sit the course exam

2. Successful completion of the course assessment

Delegates who do not meet these criteria will receive an

Informa Certificate of Attendance. If delegates have not

attended all sessions, the Certificate will clearly state the

number of hours attended.

Course Assessment

Knowledge confirmation and personal assessment to include:

Group discussions

Quiz

Who Should Attend

Finance Directors and Managers

Financial Controllers and Analysts

Vice Presidents and Senior Vice Presidents

Accounting Managers

Chief Accountants

Area and Regional Managers

Heads of Corporate Planning

Heads of Business Development

Dr. Nabil Zaki

Dr. Nabil Zaki has been in the investment

and banking industry for more than 30

years. During that period, he assumed

senior positions in both corporate finance

and treasury with major Wall Street firms

and international financial institutions in

New York, Canada and the Middle East. He has held high profile

management positions with Chase Manhattan Bank, Merrill

Lynch, Prudential Securities and Tradition. Currently, Nabil Zaki

is an adjunct Professor of Corporate Finance and Derivatives at

New York University. He taught at New York Institute of Finance

(currently known as FT Knowledge) from 1995 until 2004. He

lectures extensively on portfolio management, risk management,

derivatives, and international capital markets for major Wall

Street firms and financial institutions . Nabil worked as senior vice

presidents at both Chase Manhattan bank as well as Merrill Lynch

in a variety of senior posts in credit and treasury.

Also, Nabil is consulting a number of banks and financial

institutions in the USA, Asia and Japan in the areas of asset/

liability management, credit derivatives and restructuring as

well as risk management. Currently, he is a senior adviser for

a major hedge fund; Permal Investment Management. Also,

a Group Adviser for the Board of Directors of a major Asian

bank; EON Bank. Previously, he served as an independent board

professional director at the Board of Directors of Signature Asset

Management Company Limited - a Cayman Island incorporated

company.

Meet Your Expert Course Leader

Very exciting experience and I was able to

learn many concepts in a really short period

Arsalam Bin Jayyab, Majid Al Futtain Group

It was very informative and full of

knowledge

Firas M.Absa, Jawwal

Would you like to run this course in-house?

The in-house training division of Informa

Tel: +971 4 407 2624 Email: cts@informa.com www.informa-mea.com/cts

www.informa-mea.com/execfinance T: +971 4 335 2437 E: register-mea@informa.com

Course Timings: Registration will be at 7:30 on Day One. The course will start promptly at 8:00 and conclude at 14:30. There will be two short breaks at 10:30 and 12:30 and lunch will be served at the end of each days session.

17 20 May 2015 Jumeirah Emirates Towers Hotel, Dubai, UAE

Senior Executive Finance

MethodologyThe course will consist of a combination of classroom training, case studies and group exercises. You will be expected to bring a calculator.

Corporate Finance

Maximising Shareholder Value: Risk And Return Revisited Objectives of corporate finance What is value? Why value shares? The implications of maximising shareholder value Business operations, strategic transactions and other risks

faced by organisations Identifying strategies which create shareholder value: Return

on capital vs. cost of capital Principal agent problem getting management to act in the

best interest of shareholders

Risk And Uncertainty Risk vs. uncertainty vs. exposure vs. return What risk cannot be eliminated? Comparing arithmetic vs. geometric risk premiums A brief history of risk assessment Upside vs. downside risk Risk psychology which is it? Loss aversion vs. risk aversion

Case Study: Dimensions of risk what are they and how do they affect your bottom line?

Project Appraisal The capital investment process Accounting, earnings and market rates of return Measuring profitability and returns Present value, profitability indices, Discounted Cash Flows

(DCFs) and timing of cashflows Net Present Value (NPV) and value-creating investment

decisions Internal Rate of Return (IRR) and Modified IRR (MIRR) Adjusted Present Value (APV) method assessing the impact

of risk on cashflow analysis Modified NPV the real (or managerial or strategic) options

approach to project appraisal Mutually exclusive projects vs. independent projects Capital budgeting/rationing using linear programming and

Monte Carlo simulation

Exercise: Project appraisal comparing cashflow analysis rules and real options in investment analysis. You will use an Excel model to choose from three projects based on their payback, discounted payback, IRR, NPV, APV, and MPV.

Cost Of Capital And Capital Structure Components of capital: Short and long term debt, preference

shares, ordinary shares, hybrids Calculating beta for variations in business risk and variations in

leverage Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory

(APT) and multifactor models Cost of debt: Coupon vs. yield, market value vs. book value, tax

problems and default risk

Cost of equity: Dividend models, CAPM and its competitors APT, APV and so on

Weighted Average Cost of Capital (WACC) Modigliani Miller (M&M) propositions I and II and subsequent

developments Factors affecting the capital structure decision The effect of capital structure on cost of capital

Exercise: The capital structure conundrum how much leverage is too much?

Exercise: Valuing companies based on cash-flow based techniques (spreadsheets will be provided)

Company Valuation

Business Valuation Approaches And Methods Discounted Cash Flow Value from revenue generating assets and future growth

opportunities Shareholder value and discounted cash flow analysis Compounding and discount rates Comparing enterprise value and equity value

Exercise: Variations of IRR in Excel MIRR and XIRR (All Excel spreadsheets used in the programme will be given to you at the end of the course)

Economic Value Added (EVA) EVA when is value added? EVA and its relation to DCF model Calculation of NOPAT and capital Typical adjustments for EVA calculation MVA as a discounted EVA concept

Financial Ratio Analysis Price/earnings multiples Earnings related multiples: EV to EBIT, EBITDA, cash flow, etc. Other multiples: sales, book value, PEG ratio, EEG Relative multiples Comparable deal analysis Traditional measures of liquidity Non-financial ratio analysis

Exercise: Limitations of ratio analysis

Case Study: Dupont Valuation Model the drivers of return on equity Dividend Valuation

Dividend Discount Model (DDM) Applications and examples in practice

Exercise: Spreadsheet modelling of the DDM

Financing Strategies Raising Debt And Equity

Debt Finance Nature and obligations of bank debt Reasons for financing through debt Funding hierarchies Bank lending criteria and credit assessment

mbe expected

www.informa-mea.com/execfinance T: +971 4 335 2437 E: register-mea@informa.com

Exercise: Calculating available bank debt for a range of enterprises

Fixed Income Markets, Factors And Risks Money market and bond instruments Government, municipal and corporate bonds Repurchase agreements (REPOs) Credit and credit ratings Sources of returns from bonds Bond and other fixed interest instrument pricing methods Spot rates and zero-coupon bonds Term structure of interest rates and yield spreads Clean and dirty bond pricing Fixed income risk and return measures yield, duration,

Present Value of a Basis Point (PV01) and convexity Mark-to-market vs. accrual assessment of bond trading

positions Interest rate risks and sensitivities

Exercise: Pricing zero-coupon and coupon-paying bonds in Excel for floating and fixed-rate scenarios

Fixed Income Investment Management Characteristics of fixed income investment Advantages and disadvantages of fixed income investment Risks associated with fixed income markets Duration, PV01, convexity and other fixed income risk factors

Exercise: Calculating key ratios and pricing for bonds

Government bond markets Syndicating and pricing new issues Stability of bond ratings and bond ratings migration matrices

Case Study: The bond floatation process

Foreign Exchange (FOREX) Foreign exchange rates markets, conventions and regimes Implications of FOREX trading around the world and around

the clock Inflation and currency stability using indexing FOREX parity relationships in international markets The art and science of country risk analysis FOREX risks translation and transaction exposures

Exercise: Do foreign exchange policies matter? The implications, benefits and consequences of foreign exchange rate policies and regimes

Case Study: Managing systemic risk and the anatomy of some recent international financial crises

Exercise: Applying country risk analysis in the Middle East

Initial Public Offerings (IPOs) Primary equity markets - Middle Eastern markets - Comparison with US and European markets Rationale for an IPO Domestic vs. international issues ADRs, GDRs and EDRs Underwriting vs. best efforts Fixed price offers, tender offers and book buildin The IPO process Preparing for an IPO

Case Study: IPOs, going public and recent global trends in IPO listings

Alternative Procedures For Rasing Public Equity Capital Rights issues Seasoned equity offerings Private placements

Case Study: Recent developments in private equity

Investments And Portfolio Analysis

Portfolio/Fund Management An Introduction To Asset Management Major players in the market Portfolio/fund management process Examining different investment strategies value, growth,

technical, contrarian Active vs. passive investment strategies

Exercise: Trading anomalies and inefficient markets

Investment Performance Monitoring And Analysis

Investment Performance Evaluation Monitoring investment performance Measuring investment returns Risk-adjusted performance measures Performance measurement of portfolios containing

derivatives

Case Study: Best practice in fund management performance

Advanced Financial Techniques

Structuring Securitisation And Asset Backed Securities (ABS) Structuring and securitisation concepts Motivation for securitising assets/cash flows Types of ABSs Commodity, currency, debt and equity structured products Securitisation in developing markets

Exercise: Using MBS to meet investment objectives

Case Study: Development in securitisation in the Middle East

Analysing Corporate Mergers And Acquisitions Categories of corporate mergers Analysing rationales for potential mergers Roles of investment bankers, lawyers, underwriters and

brokers Selecting a target synergies Leverage buyouts M&A due diligence

Case Study: Analysing potential acquisition targets in the Middle East

Private Equity In The 21st Century Nature of private equity in the Middle East Comparison with USA, Europe and Asia Which and what deals would attract private equity Private equity returns empirical analysis Corporate takeovers and restructurings from a venture

capitalists viewpoint

Exercise: Evaluating investments and exits

Risk Management: Derivatives And Value Maximisation

An Introduction To Risk Management Risk management framework Different types of risk management procedures Financial markets regulation and the Basel accords Corporate governance, institutions of information, screening

and monitoring Financial risk management and its importance on financial

control Comparing crisis management and risk management

an event

Exercise: Basel II What is it? How good is it? How will it affect a business?

Exercise: Enterprise risk management What is it? Does it add value?

Case Study: Procter & Gamble and Gibsons misuse of derivatives financing lessons for senior management

Forward And Future Contracts

Forward Contract Design And Structure Understanding the structure of forward and future contracts The difference between forwards and futures Different types of forward and futures contracts including

currency, interest rates, bonds and commodities

Case Study: Designing a futures contract designing a contract combining user requirements with feasibility from the exchange standpoint

Mechanics And Uses Of Forward Contracts Trading speculation, hedging and financial engineering Measuring market risk Measuring credit risk

Case Study: Managing risk using forward contracts. You will use futures contracts to manage a range of different financial risks facing corporates

Interest Rate Forward Contracts Rates implicit in spot quotations Arbitrage pricing methods Importance of margining Clearing and netting

Swaps

Types Of Swaps Interest rate swaps Cross currency swaps Equity swaps Asset swaps

Options

Options And Their Use In Corporate Finance Understanding option jargon Using options in practice Trading and hedging Arbitrage with convertible bonds

Case Study: An option theoretic view of the organisation

Option Pricing For Corporate Finance Black-scholes and binomial options pricing methods Adoption of black-scholes method Other option pricing models Model risk do the complex mathematical models associated

with derivatives valuation have a place in the Middle East?

Exercise: You will be provided with black-scholes and binomial option pricing models and instructed on their use

Financial Control And Options Greeks Delta Gamma Vega Theta Rho

Exercise: Should organisations use derivatives to manage risks? How they should do it

Exercise: Managing risk using options greeks

Credit Risk

Introduction To Credit Risk Definition of credit risk Three approaches to measuring credit exposure individual

transaction approach, market factor approach and portfolio approach

Extension from credit exposure to credit risk credit risk management, economic capital and regulatory capital

Credit Derivatives Understanding the major uses of these products Benefits and pitfalls for the user Credit default options Total return swaps Credit spread transactions

Case Study: Developments in credit derivatives in the Middle East

Risk Assessment Techniques Risk assessment from factor sensitivity to Value at Risk (VaR)

to conditional VaR Three approaches to measuring VaR: Variance/covariance,

historical simulation, Monte Carlo methods VaR at the transaction, portfolio and organisational levels Marginal VaR contribution measures and conditional VaR Cashflow at Risk (CfaR), Earnings at Risk (EaR), and Capital at

Risk (CaR) approaches Credit Value at Risk (CVaR) and Operational Value at Risk

(OPVaR)

Exercise: VaR across the organisation and its business units including the decomposing of risk across an organisation using component VaR

Risk And Capital Allocation Techniques Risk and capital allocation using Value at Risk (VaR) measures Capital-based risk-adjusted return and performance measures Comparing economic risk capital and regulatory capital Relationship of RAROC capital to credit, market and

operational risks

Exercise: Calculating RAROC for a financial institution

an

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Course Course Fee Before 1 March 2015Course Fee Before

22 March 2015 Final Fee

Senior Executive Finance17 20 May 2015

US$ 3,995 US$ 4,595 US$ 4,795

PAYMENTS

A conrmation letter and invoice will be sent upon receipt of your registration. Please note that full payment must be received prior to the event. Only those delegates whose fees have been paid in full will be admitted to the event.

CANCELLATION

If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge. Registration fees for registrations cancelled 7 days or less before the Event must be paid in full. Substitutions are welcome at any time.

All registrations are subject to acceptance by Informa which will be conrmed to you in writing.Due to unforeseen circumstances, the programme may change and Informa reserves the right to alter the venue and/or speakers or topics.

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Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions and successfully complete the course assessment will receive an Informa/GW Certificate of Completion.

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The in-house training division of Informa Middle East

WOULD YOU LIKE TO RUN THIS COURSE IN-HOUSE?Save training $$ and create learning experiences relevant to your business. To customise this course and increase value and impact, contact Leigh Kendall on +971 4 407 2624 or email the team at cts@informa.com

Senior Executive Finance17 20 May 2015 Jumeirah Emirates Towers Hotel, Dubai, UAE